HERC Freezes Power Tariff for FY 2026–27, Bringing Relief to 83.79 Lakh Consumers

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Chandigarh : In a major relief for electricity consumers across Haryana, the Haryana Electricity Regulatory Commission (HERC) has decided to keep power tariffs unchanged for the financial year 2026–27. The decision will benefit nearly 83.79 lakh consumers across the state and will come into effect from April 1, 2026.

The Commission arrived at this decision after an in-depth examination of the Annual Revenue Requirement (ARR) petitions submitted by Uttar Haryana Bijli Vitran Nigam (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam (DHBVNL). Despite the DISCOMs projecting a combined revenue gap of approximately ₹4,484.71 crore, HERC opted against passing the burden onto consumers.

During public hearings, consumers from various categories strongly opposed any hike in electricity tariffs. Taking these concerns into account, the Commission maintained a revenue-neutral ARR by focusing on improving operational efficiency, strengthening revenue collection, better receivables management, optimizing power procurement, and reducing transmission and distribution losses.

The Tariff Order was signed on March 25 by HERC Chairman Nand Lal Sharma, along with Members Mukesh Garg and Shiv Kumar. Prior to finalizing the order, the Commission conducted an extensive consultative process, including public hearings held on January 8 at its Panchkula headquarters and subsequent field hearings in Gurugram, Panipat, Hisar, and Yamunanagar.

To enhance efficiency in the power sector, HERC issued several key directives. These include restructuring and strengthening the Haryana Power Purchase Centre (HPPC) for more transparent and cost-effective procurement. The Commission also emphasized the implementation of Demand Side Management (DSM) measures to address demand fluctuations, currently ranging between 3,000 and 5,000 MW between peak and off-peak periods.

Additionally, the distribution losses of UHBVNL have been capped at 9.30%, lower than the proposed 9.85%. The Commission has directed DISCOMs to shift from circle-level monitoring to feeder-level interventions, particularly in high AT&C loss areas, to ensure targeted and micro-level improvements.

A provision of ₹7,870.32 crore has been made for state subsidy towards agricultural tubewell supply. Farmers will continue to receive substantial relief, paying only ₹0.10 per unit against the actual cost of ₹7.48 per unit. Furthermore, applicants who applied for tubewell connections up to 10 BHP by December 31, 2023, will be allowed a one-time opportunity to enhance their load without losing seniority, valid until May 31, 2026. However, this benefit will not apply to consumers who have already availed solar tubewell connections.

Promoting electric mobility, DISCOMs have been directed to install EV charging stations in key cities including Panchkula, Faridabad, Panipat, Karnal, and Gurugram. UHBVNL has also been instructed to operationalize its existing charging station within two months.

The Commission observed that the existing Time of Day (ToD) tariff structure has not been effective and has asked DISCOMs to submit a revised proposal. Meanwhile, consumers using prepaid smart meters will be eligible for a 5% rebate on both energy and fixed charges.

Overall, the Tariff Order reflects HERC’s commitment to safeguarding consumer interests while ensuring efficiency, transparency, and financial discipline in the state’s power sector.

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